An investigation on behalf of investors in Zoo Entertainment, Inc. (NASDAQ:ZOOG) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on potential securities claims on behalf of persons that purchased Zoo Entertainment, Inc. (Nasdaq: ZOOG) stock directly from Roth Capital Partners, LLC or ThinkEquity, LLC in connection with Zoo Entertainments July 2010 public offering of 1.6 million shares of common stock at $6.00/share.
Zoo Entertainments 12months Total Revenue rose from $36.31million in 2008 to $48.71million in 2009. However, Zoo Entertainment reported a Net Loss of $21.70million, respectively $13.20million. Zoo Entertainment reported for the first three quarters in 2010 a combined nine months Total Revenue of $45.18million with a nine months Net Income of $0.12million.


Shares of Zoo Entertainment, Inc. (Public, NASDAQ:ZOOG) traded during 2010 around $5 per share and increased to $5.80 per share on Jan 2011. Then on February 1, 2011 Zoo Entertainment, Inc. announced its 4Q 2010 performance and ZOOG shares fell to $3.61 on February 10, 2011.

Zoo Entertainments July 2010 public offering prospectus filed with the U.S. Securities and Exchange Commission (SEC) contained Zoo Entertainments financial results for the three months ended March 31, 2010, reporting $0.26/share basic net income for that period. On April 15, 2011, Zoo Entertainment announced that for the three months ended March 31, 2010, Zoo Entertainments actual basic net income for that period was $.03/sharenearly a tenth of what was originally reported in the July 2010 public offering prospectus.
ZOOG shares fell from $5 on April 13 to $4.25 during Friday, April 15, 2011.